UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21989

Nicholas-Applegate Equity & Convertible Income Fund
(Exact name of registrant as specified in charter)

1345 Avenue of the Americas New York, New York 10105
         (Address of principal executive offices) (Zip code)

Lawrence G. Altadonna – 1345 Avenue of the Americas, New York, New York 10105
(Name and address of agent for service)

Registrant's telephone number, including area code: 212-739-3371

Date of fiscal year end: January 31, 2009

Date of reporting period April 30, 2008

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b 1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1 -5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Schedule of Investments

Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments
April 30, 2008 (unaudited)
Shares        
(000)     Value*
COMMON STOCK-61.5%    
    Aerospace/Defense-1.6%    
74   L-3 Communications Holdings, Inc. (a)   $8,280,735
    Agriculture-1.6%    
191   Archer-Daniels-Midland Co. (a)   8,415,460
    Automotive-1.5%    
226   Johnson Controls, Inc. (a)   7,965,234
    Beverages-4.8%    
148   Coca-Cola Co. (a)   8,742,195
159   Molson Coors Brewing Co.—Cl. B (a)   8,736,012
114   PepsiCo, Inc. (a)   7,812,420
        25,290,627
    Chemicals-1.4%    
65   Monsanto Co. (a)   7,462,609
    Commercial Services-1.4%    
140   McKesson Corp.   7,296,800
    Computers-2.7%    
379   EMC Corp. (c)   5,830,440
67   International Business Machines Corp. (a)   8,062,760
        13,893,200
    Cosmetics/Personal Care-1.6%    
121   Procter & Gamble Co.   8,139,870
    Electric-1.5%    
92   Constellation Energy Group, Inc. (a)   7,787,800
    Healthcare Products-3.2%    
142   Baxter International, Inc. (a)   8,849,440
27   Intuitive Surgical, Inc. (a) (c)   7,801,342
        16,650,782
    Insurance-2.6%    
171   Cigna Corp.   7,286,326
86   Prudential Financial, Inc.   6,488,347
        13,774,673
    Internet-1.8%    
16   Google, Inc.—Cl. A (a) (c)   9,217,355
    Machinery-3.2%    
137   AGCO Corp. (a) (c)   8,243,823
101   Deere & Co. (a)   8,482,663
        16,726,486
    Metals & Mining-1.5%    
70   Freeport-McMoRan Copper & Gold, Inc. (a)   7,962,500
    Miscellaneous Manufacturing-3.0%    
217   General Electric Co.   7,092,630
142   Textron, Inc.   8,687,824
        15,780,454
    Oil & Gas-6.3%    
69   Diamond Offshore Drilling, Inc. (a)   8,640,749
113   National Oilwell Varco, Inc. (a) (c)   7,707,470
99   Schlumberger Ltd. (a)   9,984,615
127   Valero Energy Corp.   6,213,720
        32,546,554
    Pharmaceuticals-6.2%    
162   Abbott Laboratories   8,545,500
310   Bristol-Myers Squibb Co.   6,821,685
164   Gilead Sciences, Inc. (a) (c)   8,488,640
172   Medco Health Solutions, Inc. (a) (c)   8,540,696
        32,396,521
    Retail-3.3%    
160   McDonald's Corp.   9,532,800
139   Target Corp.   7,363,818
        16,896,618


Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments
April 30, 2008 (unaudited)
Shares              
(000)           Value*
    Semi-conductors-3.1%          
355   Intel Corp.         $7,891,170
289   Texas Instruments, Inc.         8,421,408
              16,312,578
    Software-3.0%          
261   Microsoft Corp.         7,429,460
394   Oracle Corp. (a) (c)         8,208,645
              15,638,105
    Telecommunications-6.2%          
156   Harris Corp.         8,401,665
267   Juniper Networks, Inc. (c)         7,366,254
206   Qualcomm, Inc. (a)         8,910,097
202   Verizon Communications, Inc.         7,772,960
              32,450,976
    Total Common Stock (cost-$353,077,064)         320,885,937
           
CONVERTIBLE PREFERRED STOCK-26.4%          
        Credit Rating      
        (Moody's/S&P)      
    Agriculture-1.0%          
39   Bunge Ltd., 4.875%, 12/31/49   Ba1/BB     5,378,650
    Automotive-0.8%          
214   General Motors Corp., 6.25%, 7/15/33, Ser. C   Caa1/B-     3,976,401
    Banking-3.7%          
4   Bank of America Corp., 7.25%, 12/31/49, Ser. L   A1/A+     4,410,900
    Wachovia Corp,          
134      13.15%, 3/30/09, Ser. GE (General Electric Co.) (d)   Aa3/AA-     4,429,269
103      14.10%, 4/1/09, Ser. JPM (JP Morgan Chase & Co.) (d)   Aa3/AA-     4,861,445
43   Wells Fargo & Co., 8.00%, 6/1/08, Ser. AAPL (Apple, Inc.) (d)   Aa1/AA+     5,801,680
              19,503,294
    Commercial Services-0.6%          
102   United Rentals, Inc., 6.50%, 8/1/28   B3/B-     3,054,291
    Diversified Financial Services-8.2%          
61   Citigroup Funding, Inc., 4.583%, 9/27/08, Ser. GNW (Genworth Financial, Inc.) (b) (d)   Aa3/AA-     1,459,773
    Credit Suisse Group,          
174      11.00%, 3/16/09, Ser. MSFT (Microsoft Corp.) (d)   Aa1/AA-     4,788,621
72      11.00%, 4/25/09, Ser. KO (Coca-Cola Corp.) (d)   Aa1/AA-     4,610,876
    Eksportfinans AS,          
102      10.00%, 3/12/09, Ser. HPQ (Hewlett Packard Co.) (d)   Aaa/AA     4,504,508
288      13.00%, 11/1/08, Ser. TWX (Time Warner, Inc.) (d)   Aaa/A+     4,195,355
    Goldman Sachs Group, Inc.,          
199      9.75%, 12/19/08, Ser. CSCO (Cisco Systems, Inc.) (d)   Aa3/NR     5,033,971
146   Lazard Ltd., 6.625%, 5/15/08   Ba1/NR     4,728,618
    Lehman Brothers Holdings, Inc.,          
209      6.00%, 10/12/10, Ser. GIS (General Mills, Inc.) (d)   A1/A+     4,975,965
68      8.50%, 8/25/08, Ser. UTX (United Technologies Corp.) (d)   A1/A+     4,617,675
33      28.00%, 3/6/09, Ser. RIG (Transocean, Inc.) (d)   A1/A+     3,635,256
              42,550,618
    Electric-3.1%          
103   AES Trust III, 6.75%, 10/15/29   B3/B-     4,856,130
82   Entergy Corp., 7.625%, 2/17/09   NR/BBB     5,522,123
15   NRG Energy, Inc., 5.75%, 3/16/09   B2/CCC+     5,657,840
              16,036,093
    Hand/Machine Tools-0.9%          
5   Stanley Works, 6.53%, 5/17/12 (b)   A2/A     4,538,300
    Insurance-2.4%          
157   Metlife, Inc., 6.375%, 8/15/08   NR/BBB+     4,625,964
165   Platinum Underwriters Holdings Ltd., 6.00%, 2/15/09, Ser. A   NR/BB+     5,289,803
197   XL Capital Ltd., 7.00%, 2/15/09   Baa1/A-     2,777,418
              12,693,185
    Investment Companies-1.0%          
72   Vale Capital Ltd., 5.50%, 6/15/10, Ser. 1   NR/NR     5,320,600
    Oil & Gas-1.0%          
36   Chesapeake Energy Corp., 5.00%, 12/31/49   NR/B     5,236,913


Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments
April 30, 2008 (unaudited)
Shares            
(000)         Value*
    Real Estate-0.8%        
199   FelCor Lodging Trust, Inc., 1.95%, 12/31/49, Ser. A, (REIT) B2/B-     $3,903,413
    Sovereign-1.9%        
    Svensk Exportkredit AB,        
120      10.00%, 10/20/08, Ser. TEVA (Teva Pharmaceutical Industries Ltd.) (d) Aa1/AA+     5,266,006
54      12.50%, 12/12/08, Ser. XOM (Exxon Mobil Corp.) (d) Aa1/AA+     4,750,752
            10,016,758
    Telecommunications-1.0%        
98   Crown Castle International Corp., 6.25%, 8/15/12 NR/NR     5,704,300
    Total Convertible Preferred Stock (cost-$150,148,141)       137,912,816
         
CONVERTIBLE BONDS & NOTES-6.2%        
Principal            
Amount            
(000)            
    Auto Manufacturers-1.0%        
$4,575   Ford Motor Co., 4.25%, 12/15/36 Caa1/CCC+     5,106,844
    Commercial Services-0.9%        
4,800   Bowne & Co., Inc., 5.00%, 10/1/33 B1/B-     4,963,200
    Computers-1.0%        
4,925   Maxtor Corp., 6.80%, 4/30/10 Ba1/NR     5,195,875
    Internet-1.0%        
4,550   Amazon.com, Inc., 4.75%, 2/1/09 Ba2 /B+     4,987,938
    Oil & Gas-1.3%        
3,775   Devon Energy Corp., 4.95%, 8/15/08 Baa1/BBB+     6,809,156
    Telecommunications-1.0%        
5,910   Level 3 Communications, Inc., 6.00%, 3/15/10 Caa3/CCC     5,053,050
    Total Convertible Bonds & Notes (cost-$32,314,536)       32,116,063
         
CORPORATE BONDS & NOTES-2.6%        
    Computers-0.4%        
2,300   Unisys Corp., 8.00% 10/15/12 B2/B+     2,104,500
    Diversified Financial Services-0.1%        
500   GMAC LLC, 6.75%, 12/1/14 B2/B     382,537
    Miscellaneous Manufacturing-0.2%        
1,000   Polypore, Inc., 8.75%, 5/15/12 Caal/B-     997,500
    Oil & Gas-0.8%        
4,340   Dynegy Holdings, Inc., 7.75%, 6/1/19 B2/B     4,340,000
    Paper Products-0.2%        
1,000   Neenah Paper, Inc., 7.375%, 11/15/14 B2/B+     905,000
    Telecommunications-0.9%        
4,600   Millicom International Cellular S.A., 10.00%, 12/1/13, GDR B1/BB     4,933,500
    Total Corporate Bonds & Notes (cost-$13,111,108)       13,663,037
         
U.S. GOVERNMENT SECURITIES-0.4%        
2,000   United States Treasury Notes, 12.00%, 8/15/13 (cost-$2,125,625) Aaa/AAA     2,055,782
         
SHORT-TERM INVESTMENT-2.7%        
    Time Deposit-2.7%        
13,829   Citibank-London, 1.69%, 4/1/08 (cost-$13,828,896)       13,828,896
    Total Investments, before call options written (cost-$564,605,370)-99.8%       520,462,531


Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments
April 30, 2008 (unaudited)
Contracts       Value*
CALL OPTIONS WRITTEN (c)-(0.3)%        
             
960   AGCO Corp., strike price $70, expires 5/17/08     $(19,200 )
1,335   Archer-Daniels-Midland Co., strike price $50, expires 5/17/08     (13,350 )
995   Baxter International, Inc., strike price $62.50, expires 5/17/08     (129,350 )
1,040   Coca-Cola Co., strike price $62.50, expires 5/17/08     (10,400 )
645   Constellation Energy Group, Inc., strike price $100, expires 5/17/08     (3,225 )
705   Deere & Co., strike price $95, expires 5/17/08     (28,200 )
485   Diamond Offshore Drilling, Inc., strike price $145, expires 6/21/08     (64,263 )
490   Freeport-McMoRan Copper & Gold, Inc., strike price $130, expires 6/21/08     (142,100 )
1,150   Gilead Sciences, Inc., strike price $55, expires 6/21/08     (120,750 )
113   Google, Inc., strike price $580, expires 6/21/08     (319,790 )
465   International Business Machines Corp., strike price $125, expires 6/21/08     (90,675 )
185   Intuitive Surgical, Inc., strike price $360, expires 6/21/08     (46,250 )
1,580   Johnson Controls, Inc., strike price $40, expires 5/17/08     (7,900 )
520   L-3 Communications Holdings, Inc., strike price $115, expires 5/17/08     (39,000 )
1,205   Medco Health Solutions, Inc., strike price $55, expires 6/21/08     (72,300 )
1,115   Molson Coors Brewing Co., strike price $60, expires 6/21/08     (78,050 )
460   Monsanto Co., strike price $140, expires 5/17/08     (6,900 )
790   National Oilwell Varco, Inc., strike price $82.50, expires 5/17/08     (3,950 )
2,755   Oracle Corp., strike price $22.50, expires 6/21/08     (77,140 )
800   PepsiCo, Inc., strike price $72.50, expires 6/21/08     (32,000 )
1,445   Qualcomm, Inc., strike price $45, expires 5/17/08     (44,795 )
695   Schlumberger Ltd., strike price $105, expires 5/17/08     (79,925 )
    Total Call Options Written (premium received-$2,770,375)     (1,429,513 )
    Total Investments, net of call options written (cost-$561,834,995)-99.5%     519,033,018  
    Other assets less liabilities-0.5%     2,816,825  
    Net Asset-100.0%     $521,849,843  

Notes to Schedules of Investments:

*

Portfolio securities and other financial instruments for which market quotations are readily available are available are stated at market value. Portfolio securities and other financial instruments for which market quotations are not readily available or if a development/event occurs that may significantly impact the value of a security, are fair-valued, in good faith, pursuant to guidelines established by the Borad of Trustees or persons acting at their discretion pursuant to guidelines approved by the Board of Trustees. The Fund's investments, including over-the-counter options, are valued daily using prices supplied by an independent pricing service or dealer quotations, or the last sale price on the exchange that is the primary market for such securities, or the mean between the last quoted bid and ask price for those securities for which the over-the-counter market is the primary market or for listed securities in which there were no sales. Independent pricing services use infromation provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Exchange traded options are valued at the settlement price determined by the relevant exchange. Short-term securities maturing in 60 days or less are valued at amoritized cost, if their original term to maturity was 60 days less, or by amortizing their value on the 61st day prior to maturity, if the original term exceeded 60 days. The prices used by the Fund to value securities may differ from the value that would be realized if the securities were sold. The Fund's net asset value is normally determined as of the close of regular trading (normally, 4:00 p. m. Eastern time) on the New York Stock Exchange ("NYSE") on each day the NYSE is open for business.

 
(a)

All or partial amount segregated as collateral for call options written.

(b)

Variable rate security. Interest rate disclosed reflects the rate in effect on April 30, 2008.
(c)

Non-income producing.

(d)

Securities exchangeable or convertible into securities of an entity different than the issuer. Such entity is identified in the parenthetical.

 


Nicholas-Applegate Equity & Convertible Income Fund Schedule of Investments
April 30, 2008 (unaudited)



Glossary:
GDR-Global Depositary Receipt
NR-Not Rated
REIT-Real Estate Investment Trust


Other Investments:
Transactions in call options written for the three months ended April 30, 2008:
  Contracts   Premiums
Options outstanding, January 31, 2008 32,480     $4,595,709  
Options written 49,148       6,033,830  
Options terminated in closing purchase transactions (8,675 )     (1,131,613 )
Options expired (52,185 )     (6,638,207 )
Options exercised (835 )     (89,344 )
Options outstanding, April 30, 2008 19,933       $2,770,375  

Fair Value Measurements—Effective February 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("FAS 157"). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of the fair value measurements. The three levels of the fair value hierarchy under FAS 157 are described below:

  • Level 1 — quoted prices in active markets for identical investments
  • Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
  • Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of April 30, 2008 in valuing the Fund's investments carried at value:

    Investments in
Valuation Inputs      Securities
Level 1 — Quoted Prices   $353,032,835  
Level 2 — Other Significant Observable Inputs   166,000,183  
Level 3 — Significant Unobservable Inputs   -  
Total   $519,033,018  

Item 2. Controls and Procedures

(a)

The registrant's President & Chief Executive Officer and Treasurer, Principal Financial & Accounting Officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c)), as are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
 
(b)

There were no significant changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
 

Item 3. Exhibits

(a)

Exhibit 99.302 Cert. – Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: Nicholas-Applegate Equity & Convertible Income Fund

By /s/ Brian S. Shlissel
President & Chief Executive Officer

Date: June 26, 2008

By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer

Date: June 26, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By /s/ Brian S. Shlissel
President & Chief Executive Officer

Date: June 26, 2008

By /s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer

Date: June 26, 2008